NSG waiver likely to cheer mkt but global slump still haunts investors

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Indian markets remained under pressure last week on the back of weak global cues and the Nuclear Suppliers Group (NSG) meet. But on Saturday, India finally got the nod from the NSG for its Indo-US nuclear deal, and dealers in the market say this decision will have a positive impact on the market in the coming days. However, the fear of inflation and concern over global economic slowdown will remain in the mind of the investors.

Deven Choksey , MD of KR Choksey Securities said, “The issue of the NSG meet was hovering over the market since past many days, and hopefully the decision has come out positively. We assume that this will have an encouraging impact on market in the coming days.”

On the back of weak global cues, Indian markets were volatile since the past many days. In the last week, the 30-share Sensex of Bombay Stock Exchange (BSE) was down by 80.70 points or 0.55% and finally closed at 14.483.83 points on Friday. The S&P CNX Nifty of National Stock Exchange (NSE) also lost 7.7 points or 0.18% in the last week and ended at 4,352.30 points on Friday.

“After this historic decision at the NSG meet we might see the inflows of the foreign institutional investors ( FII ) coming in the Indian markets who had been resorting to intense selling in the past few sessions,” added Choksey.

However the dealers in market also say that, though the NSG meet has been successful, negative overseas cues will certainly have a major impact on the Indian markets in the near term and we may see markets remaining volatile in the coming days.

On Friday last trading day, Sensex had lost 415.27 points or 2.79% and closed at 14.483.83 points. The Nifty was also down by 95.45 points or 2.15% and ended the day at 4,352.30 points.